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VAT / Tax Calculator

Add or extract VAT / sales tax from any price with a chosen rate.

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FAQs

How do I extract VAT from a tax-inclusive price?

Divide the total price by (1 + VAT rate). For a 20% VAT rate: if the price including VAT is $600, the pre-tax price is $600 ÷ 1.20 = $500. The VAT amount is $600 - $500 = $100. Do not simply multiply by 20% — that gives the wrong answer.

What is the difference between VAT and sales tax?

VAT is collected at each stage of production and is built into prices shown to consumers. Sales tax is applied only at the point of final sale and is typically shown separately at checkout. From the consumer's perspective the effect on the final price is similar, but the collection mechanism differs.

What VAT rates are common in different countries?

Standard VAT rates vary widely: UK 20%, EU countries typically 19–25%, Australia (GST) 10%, Canada (GST) 5%, India (GST) 5–28% depending on goods. The US does not use VAT but uses state sales tax ranging from 0% to about 10%.